Florida Senate - 2019                             CS for SB 1044
       By the Committee on Infrastructure and Security; and Senator
       596-03289-19                                          20191044c1
    1                        A bill to be entitled                      
    2         An act relating to the Department of Transportation;
    3         amending s. 20.23, F.S.; deleting the requirement that
    4         the Governor appoint the Secretary of Transportation
    5         from among three persons nominated by the Florida
    6         Transportation Commission; providing additional
    7         qualifications for the secretary; creating s. 334.179,
    8         F.S.; prohibiting local governments from adopting
    9         standards or specifications that are contrary to the
   10         department standards or specifications for permissible
   11         use of aggregates that have been certified for use;
   12         defining the term “certified for use”; amending s.
   13         337.025, F.S.; authorizing the department to establish
   14         a program for transportation projects that demonstrate
   15         certain innovative techniques for measuring resiliency
   16         and structural integrity and controlling time and cost
   17         increases; amending s. 337.14, F.S.; requiring that
   18         any contractor, instead of any person, desiring to bid
   19         for the performance of certain construction contracts
   20         first be certified by the department as qualified;
   21         conforming provisions to changes made by the act;
   22         requiring a contractor desiring to bid on certain
   23         contracts to have satisfactorily completed certain
   24         projects; amending s. 337.185, F.S.; increasing the
   25         maximum amounts per contract of certain contractual
   26         claims that must be arbitrated by the State
   27         Arbitration Board under certain circumstances;
   28         providing an effective date.
   30  Be It Enacted by the Legislature of the State of Florida:
   32         Section 1. Subsection (1) of section 20.23, Florida
   33  Statutes, is amended to read:
   34         20.23 Department of Transportation.—There is created a
   35  Department of Transportation which shall be a decentralized
   36  agency.
   37         (1)(a) The head of the Department of Transportation is the
   38  Secretary of Transportation. The secretary is shall be appointed
   39  by the Governor, from among three persons nominated by the
   40  Florida Transportation Commission and shall be subject to
   41  confirmation by the Senate. The secretary shall serve at the
   42  pleasure of the Governor.
   43         (b) The secretary must shall be a proven, effective
   44  administrator who, by a combination of education and experience,
   45  clearly possesses shall clearly possess a broad knowledge of the
   46  administrative, financial, and technical aspects of the
   47  development, operation, and regulation of transportation systems
   48  and facilities or comparable systems and facilities. The
   49  secretary must be a registered professional engineer in
   50  accordance with chapter 471 or the laws of another state, or, in
   51  lieu of professional engineer registration, must hold an
   52  advanced degree in an appropriate related discipline, such as a
   53  Master of Business Administration, and have 5 years of relevant
   54  transportation experience or must have 10 years of relevant
   55  transportation experience.
   56         (c) The secretary shall provide to the Florida
   57  Transportation Commission or its staff, such assistance,
   58  information, and documents as are requested by the commission or
   59  its staff to enable the commission to fulfill its duties and
   60  responsibilities.
   61         (d) The secretary may appoint up to three assistant
   62  secretaries who shall be directly responsible to the secretary
   63  and who shall perform such duties as are assigned by the
   64  secretary. The secretary shall designate to an assistant
   65  secretary the duties related to enhancing economic prosperity,
   66  including, but not limited to, the responsibility of liaising
   67  liaison with the head of economic development in the Executive
   68  Office of the Governor. This Such assistant secretary is shall
   69  be directly responsible for providing the Executive Office of
   70  the Governor with investment opportunities and transportation
   71  projects that expand the state’s role as a global hub for trade
   72  and investment and enhance the supply chain system in the state
   73  to process, assemble, and ship goods to markets throughout the
   74  eastern United States, Canada, the Caribbean, and Latin America.
   75  The secretary may delegate to any assistant secretary the
   76  authority to act in the absence of the secretary.
   77         (e) Any secretary appointed after July 5, 1989, and the
   78  assistant secretaries are shall be exempt from the provisions of
   79  part III of chapter 110 and must shall receive compensation that
   80  is commensurate with their qualifications and competitive with
   81  compensation for comparable responsibility in the private
   82  sector.
   83         Section 2. Section 334.179, Florida Statutes, is created to
   84  read:
   85         334.179 Departmental standards or specifications for
   86  permissible use of aggregates.—Notwithstanding any law, rule, or
   87  ordinance to the contrary, a local government may not adopt
   88  standards or specifications that are contrary to the
   89  departmental standards or specifications for permissible use of
   90  aggregates that have been certified for use. For purposes of
   91  this section, the term “certified for use” means that the
   92  aggregates have been certified by the producer in accordance
   93  with departmental rule.
   94         Section 3. Subsection (1) of section 337.025, Florida
   95  Statutes, is amended to read:
   96         337.025 Innovative transportation highway projects;
   97  department to establish program.—
   98         (1) The department may is authorized to establish a program
   99  for transportation highway projects demonstrating innovative
  100  techniques of highway and bridge design, construction,
  101  maintenance, and finance which have the intended effect of
  102  measuring resiliency and structural integrity and controlling
  103  time and cost increases on construction projects. Such
  104  techniques may include, but are not limited to, state-of-the-art
  105  technology for pavement, safety, and other aspects of highway
  106  and bridge design, construction, and maintenance; innovative
  107  bidding and financing techniques; accelerated construction
  108  procedures; and those techniques that have the potential to
  109  reduce project life cycle costs. To the maximum extent
  110  practical, the department must use the existing process to award
  111  and administer construction and maintenance contracts. When
  112  specific innovative techniques are to be used, the department is
  113  not required to adhere to those provisions of law that would
  114  prevent, preclude, or in any way prohibit the department from
  115  using the innovative technique. However, before prior to using
  116  an innovative technique that is inconsistent with another
  117  provision of law, the department must document in writing the
  118  need for the exception and identify what benefits the traveling
  119  public and the affected community are anticipated to receive.
  120  The department may enter into no more than $120 million in
  121  contracts annually for the purposes authorized by this section.
  122         Section 4. Subsection (1) of section 337.14, Florida
  123  Statutes, is amended to read:
  124         337.14 Application for qualification; certificate of
  125  qualification; restrictions; request for hearing.—
  126         (1) Any contractor person desiring to bid for the
  127  performance of any construction contract in excess of $250,000
  128  which the department proposes to let must first be certified by
  129  the department as qualified pursuant to this section and rules
  130  of the department. The rules of the department must shall
  131  address the qualification of contractors persons to bid on
  132  construction contracts in excess of $250,000 and must shall
  133  include requirements with respect to the equipment, past record,
  134  experience, financial resources, and organizational personnel of
  135  the applying contractor which are applicant necessary to perform
  136  the specific class of work for which the contractor person seeks
  137  certification. Any contractor desiring to bid on contracts in
  138  excess of $50 million must have satisfactorily completed two
  139  projects, each in excess of $25 million, for the department or
  140  for any other state department of transportation. The department
  141  may limit the dollar amount of any contract upon which a
  142  contractor person is qualified to bid or the aggregate total
  143  dollar volume of contracts such contractor person is allowed to
  144  have under contract at any one time. Each applying contractor
  145  applicant seeking qualification to bid on construction contracts
  146  in excess of $250,000 shall furnish the department a statement
  147  under oath, on such forms as the department may prescribe,
  148  setting forth detailed information as required on the
  149  application. Each application for certification must shall be
  150  accompanied by the latest annual financial statement of the
  151  applying contractor applicant completed within the last 12
  152  months. If the application or the annual financial statement
  153  shows the financial condition of the applying contractor
  154  applicant more than 4 months prior to the date on which the
  155  application is received by the department, then an interim
  156  financial statement and an updated application must be submitted
  157  and be accompanied by an updated application. The interim
  158  financial statement must cover the period from the end date of
  159  the annual statement and must show the financial condition of
  160  the applying contractor applicant no more than 4 months prior to
  161  the date that the interim financial statement is received by the
  162  department. However, upon the request of by the applying
  163  contractor applicant, an application and accompanying annual or
  164  interim financial statement received by the department within 15
  165  days after either 4-month period under this subsection shall be
  166  considered timely. Each required annual or interim financial
  167  statement must be audited and accompanied by the opinion of a
  168  certified public accountant. An applying contractor applicant
  169  desiring to bid exclusively for the performance of construction
  170  contracts with proposed budget estimates of less than $1 million
  171  may submit reviewed annual or reviewed interim financial
  172  statements prepared by a certified public accountant. The
  173  information required by this subsection is confidential and
  174  exempt from the provisions of s. 119.07(1). The department shall
  175  act upon the application for qualification within 30 days after
  176  the department determines that the application is complete. The
  177  department may waive the requirements of this subsection for
  178  projects having a contract price of $500,000 or less if the
  179  department determines that the project is of a noncritical
  180  nature and the waiver will not endanger public health, safety,
  181  or property.
  182         Section 5. Subsection (1) of section 337.185, Florida
  183  Statutes, is amended to read:
  184         337.185 State Arbitration Board.—
  185         (1) To facilitate the prompt settlement of claims for
  186  additional compensation arising out of construction and
  187  maintenance contracts between the department and the various
  188  contractors with whom it transacts business, the Legislature
  189  does hereby establish the State Arbitration Board, referred to
  190  in this section as the “board.” For the purpose of this section,
  191  the term “claim” means the aggregate of all outstanding claims
  192  by a party arising out of a construction or maintenance
  193  contract. Every contractual claim in an amount up to $250,000
  194  per contract or, at the claimant’s option, up to $1 million
  195  $500,000 per contract or, upon agreement of the parties, up to
  196  $2 million $1 million per contract which that cannot be resolved
  197  by negotiation between the department and the contractor must
  198  shall be arbitrated by the board after acceptance of the project
  199  by the department. As an exception, either party to the dispute
  200  may request that the claim be submitted to binding private
  201  arbitration. A court of law may not consider the settlement of
  202  such a claim until the process established by this section has
  203  been exhausted.
  204         Section 6. This act shall take effect July 1, 2019.